topic TT Business not recording STCG in Get your taxes done using TurboTax

TT Business not recording STCG

gonefishingwi — Fri, 21 Feb 2025 20:12:52 GMT

I am working on my 2024 taxes and have tried repeatedly to enter Short Term Capital Gains for the beneficiaries of a Trust. TT Business puts them all under LT even though I uncheck the box that asks if these are from a decedent.

Also, anyone know how to create a K-1 with unique values for each beneficiary? Sad that it does not consider that the funds are managed and that the income each year is not "exact" for all beneficiaries. The Trust was initially split per the terms at the start (e.g., 30/30/30/10 percentages), but each of the 4 accounts is making income at different rates (e.g., accounts are used differently between beneficiaries).

This will be my last year of using TT Business if they can't get this working to handle Simple Trusts.

Re: TT Business not recording STCG

PatriciaV — Mon, 03 Mar 2025 21:22:00 GMT

If the summary page for your investment sale shows this as a Long-term sale, you need to review to be sure the box for "decedent" is checked "no" not blank. Or delete the sale and re-enter.

Also, be sure you are reporting on a calendar year and not a fiscal year (this appears at the top of Form 1041).

Yes, you can use the Direct Entry Method on Schedules K-1 to specifically report income & expense items to each Beneficiary. You would need to manually calculate the amounts to report, as TurboTax isn't able to do this on a Form 1041 return.

To use the Direct Entry method, do not enter the Beneficiary's tier distribution amounts or percentage in the Beneficiary's Allocation Smart Worksheet on Schedule K-1; instead, enter this beneficiary's amounts directly on Schedule K-1, lines 1 through 14.

Very important: If you use the Direct Entry method for one beneficiary, you must use the Direct Entry method for all beneficiaries.

Re: TT Business not recording STCG

gonefishingwi — Tue, 04 Mar 2025 15:35:21 GMT

I did as instructed by removing entries in "Beneficiary's tier distribution" in the Beneficiary's Allocation Smart Worksheet. Unfortunately, the fields on the Sch K-1 L1-14 are NOT EDITABLE, but rather provide a magnifying glass that links me to the "K-1 Worksheet" that contains the total amounts for all beneficiaries that are then linked to the "Distributable Income for Schedules K-1" [where my ST and LT CGs are removed with no entry possible!] going back to the original sources in "Interest and Dividend Income Worksheet".

Your response implies that the K-1 Worksheets can be completed manually ... the only fields highlighted "yellow" are those in the Smart Worksheet that you said were to be cleared.

Help is appreciated.

Re: TT Business not recording STCG

PatriciaV — Tue, 11 Mar 2025 14:39:34 GMT

To enter the allocated amount on each Schedule K-1, right-click the box and select "Override." You may then enter an amount for this income line.

Note that overriding calculated numbers in TurboTax invalidates the return for e-filing. In this case, you will need to print and mail the Form 1041 return.

The instructions given previously can be found by right-clicking any of the yellow boxes in the Beneficiary's Allocation Smart Worksheet and choosing "About..." The options in this On-Demand Tax guidance may provide a better solution for you.